global challenges for exxonmobil (1)

8/2/2019 Global Challenges for ExxonMobil (1)

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ExxonMobil is the worlds largest publicly traded

integrated petroleum and natural gas company.


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Strengthso A long established name that has been in existence for

over one hundred years. This gives the customers a senseof security when dealing with the organization.

o The organization has diversified into many different areas

of the energy industry and has a strong brands under itsmain umbrella group.

o The organization in the past has been able to survivewithout much damage to its reputation even after theExxon Valdez oil spill. This is partly due to a few reasons,the good corporate citizenship of the organization, thecorrect and appropriate crisis management and crisiscommunication management strategy.

o Cont.


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o The organization has been innovative in the past andcontinues to be very innovative currently too by spending alot on research and development to come up with moreefficient and effective ways to manage the energyresources and reduce the negative impact to theenvironment.

o The organization has a global presence and thus hasaccess to a wider customer base and a larger market thanother energy companies.

o The organization has a very strong presence in both Indiaand China, the emerging markets that have been known toincrease their energy demands exponentially thus theorganization has been profiting from this at a higher ratethan most other organizations.


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o The organization has been accused of not doingenough to go green and conserve the environment,rather that it is polluting and destroying theenvironment.

o There has been much negative publicity generatedfrom the Exxon Valdez spill and also the human rightsor rather the employee rights records of theorganization has been under a cloud, which is a

significant weakness of the organization.o Inappropriate handling of the environmental interest

groups is a very big weakness of the organization andcan be detrimental to it in the future.


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Further the organization has been known for exorbitantprofits in the last few years as energy prices wereincreasing, which gave it quite a lot of negative publicitythat the organization did not handle very well and has

cost it the good will of its consumers, who consider theorganization to be becoming rich at the expense of thepoorconsumer.


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o The emerging economies of China and India thathave been the biggest demanders of energy in thepast few years are being hit by the recession in thedeveloped economies and thus have reduced their

rates of energy consumption that has caused theorganization to loose out on projected levels of profit.

o The increased attention to the conservation of theenvironment has resulted in the reduction of the use

of energy and energy savings and in the future thiswill only increase thus reducing the profitability of theorganization.


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Environmental obstacle is reduced its image

ExxonMobil was embroiled in a mega oil bribery scandal

Some conflict-ridden oil-rich countries may interrupt the

flow of the oil supply Enviable financial position has created another problem


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Concentration strategy

o Which is focuses on single business competing in asingle industry.

o

ExxonMobil focus on create energy from oil andnatural gas ad sales to worldwide

o Conduct business in 200 countries and territories


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Products and serviceso Fuels (petrol, diesel fuel, LPG, heating oils and kerosene)

o Chemicals (manufacturer and global marketer of petrochemicalssuch as olefins, aromatics, fluids, synthetic rubber, polyethylene,

polypropylene, oriented polypropylene packaging films,plasticizers, synthetic lubricant basestocks, additives for fuelsand lubricants, zeolite catalysts and other

o Marine (provide marine fuel )

o Lubricants & specialties (offer a full range of mineral and

synthetic lubricants, basestocks and specialty products such aswaxes, process oils and white oils

o Aviation (supply of aviation fuel in the world)


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Develop new energy technologies to expand supply oftraditional fuels and advance new energy source.

Strategy to meet international communityo improving safety,

o reducing environmental impacts of energy production,

o enable access to new sources of energy supply.


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Develop an innovative system

o ExxonMobil has joined with three other major oil andgas companies to develop an innovative system andhave committed to a total initial investment of $1billion on this project.

Chevron, ConocoPhillips and Shell,

o This new innovative system is to be mobilized within24 hours of an incident, designed to capture up to100,000 barrels of oil a day from a well blowout inwaters as deep as 10,000 feet. The four membercompanies important project.


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3. Ethical responsibilities: meet other societalexpectation, not written as law.Eg. Discontinue practicethat violate animal.

4. Philantropic responsibilities; additional behaviorsand activities that society finds desirable and that thevalues of the business support. Eg. Donation of cash orgoods to tsunami and earthquake victims.


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Eventhough many problems raise on Exxonmobil CSR suchas 1989 Exxon Valdez Debacle, their embroiled in mega oilbribery scandal and also US reluctances on Kyoto Protocol,Exxonmobil still spend a huge of money for society.

On 2004, they spent USD106.5million for donation of cash,goods and services worldwide. The amount was increase toUSD14.1billion on 2009. Its about 4.5% from their totalrevenue (USD310B).

The purpose of CSR is to balance the economic growth,social development and environmental protection.

Established a report on their CSR - 2009 CorporateCitizenship Report.


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Their CSR focus on education, public health, environment,public policy and human rights.

1. Educationo ExxonMobil Malaysia provided Scholarships and best student

awards for deserving students from secondary and primary schools

in Negeri Sembilan under the ExxonMobil Education andScholarship Fund.

o Funding of educational programmes to promote English andscience education, improve computer literacy among youth from therural areas, and sports awards to recognise outstanding youngathletes.

o ExxonMobils new community investment program, the EducatingWomen and Girls Initiative, was launched in July 2005. Theyawarded grants for women and girls in the developing world,investing more than $3 million in 2005.


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ExxonMobil is a strong supporter of the Roll BackMalaria, global partnership founded by the WHO, theUnited Nations Development Programme (UNDP), theUnited Nations Children's Fund (UNICEF) and the World

Bank with the goal of halving the world's malaria burdenby 2010.

Over the last five years, ExxonMobil has contributedalmost RM500,000 for healthcare programs andequipment for hospitals and clinics in Terengganu,

Malaysia. School-in-hospital program for chronically ill children

requiring long term hospitalization and treatment.


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In 2006, ExxonMobil funded an energy efficiencyproject managed by the Centre for Environment,Technology & Development, Malaysia (CETDEM). Called"Working with the Community on Energy Efficiency at the

Household Level in Petaling Jaya" (WCPJ), it will help topromote awareness on efficient energy usage in urbanhouseholds and the potential benefits that can beachieved.

ExxonMobil also developed and implemented

Environmental Business Planning (EBP) as part of theannual business planning cycle.

Sponsor environmental workshop for school teacherwho are the advisor of Schools Nature Clubs.


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Rollout of the Framework on Security and HumanRights to the remainder of ExxonMobil operated affiliatesthat conducted throughout 2006.

5. Public policy.o ExxonMobil will ensure that they had follows all rules

and regulation stated inside their Standard of

Business Conduct, Labor Practice Policy and anyother relevant policy.


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Are there any other strategiesExxonMobil can implement to

help improve its image andperformance?


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Using materiality analysis to identify social andenvironmental challenges and opportunities that areimportant to external audiences, and to prioritize them inbusiness strategies.

Develop cost-effective technologies to increase futureenergy supplies, and improve energy efficiency.


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Seeking ways toreduce greenhousegas (GHG) emissions


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Continue to improve security measures to furtherenhance the protection of people and assets.

Emphasize hazard recognition and reduce risk tolerancein our workforce through behavior-based safety tools

Encourage its customers to purchase goods from itsconvenience stores apart from filling gasoline in theExxonMobil gas station.

The company should provide convenient and fast

service, hygiene restrooms and friendly employees to itscustomers.


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Thank YOU

global challenges for exxonmobil (1)

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